The costs of handling cash can be very deceptive. On the surface, it may look like your business doesn’t spend very much money on cash handling. But once you stop to consider the costs that are associated with handling cash, you might be in for a reality check! Each step of the cash handling process has a monetary value attached to it, and when you add it all up, the total might shock you.
Luckily, you are not powerless when it comes to making your cash management process more effective. Introducing technology into your cash management process can increase the profitability of accepting cash by streamlining your day-to-day operations. Once you understand the specific costs of handling cash for your business, you can determine your best strategy to relieve the burden of these costs.
Determining Where Costs Originate
The first step in understanding the costs of handling cash is doing a comprehensive study of your entire cash management process. From accepting cash payments at the till to making deposits at the bank, there are visible and hidden costs. One way to figure out where you are spending money during your cash management process is to use a cost of cash calculator. A cost of cash calculator breaks down the amounts of cash you spend at each step of the cash handling process.
Some of the costs associated with handling cash are visible and expected. These costs are things like the office supplies you need to process cash (envelopes, balancing sheets, coin wrappers, etc.). A certain amount of labour costs is also associated with cash handling. The costs of labour during the cash management process can vary daily and are highly dependent on the accuracy of cash handling during transactions.
The variability of labour costs associated with cash handling brings us into the realm of hidden costs. Unlike the very clear costs of processing payments by credit card, costs of handling cash can be unreliable. Mistakes that are made at the cash register, such as giving customers the wrong amount of change or accepting counterfeit currency, can also translate into additional costs when it comes to balancing the till. Inaccuracy in one area has a ripple effect that continues throughout the cash management process and drives up your costs of handling cash.
What Are Your Options?
Once you have completed a comprehensive examination of how much money your business spends on the costs of handling cash, it is in your best interest to streamline that process to reduce costs. One of the easiest and most efficient ways to do so is by investing in automated cash management technology.
Investing in Automated Cash Management Solutions
Accepting and processing cash does not need to impact your profitability. Investing in automated cash management provides your business with an efficient and accurate solution. Once you determine where you are spending the most amount of money during the cash management process, you can determine what types of technology you will need.
You can automate a single part of the process or the entire process, depending on the specific needs of your business. For example, if your business spends the most amount of money on labour associated with counting and sorting cash when balancing the till, investing in cash and coin sorters can provide you with fast and accurate totals. If inaccuracy or risk of fraud poses a big threat during cash transactions, a currency recycler can provide your business with complete security. Investing in automated cash management introduces stability, security, and efficiency into your business and cuts the costs of handling cash, allowing you to benefit from accepting and processing cash transactions.